4.1. ERMUSR 04-09-2019 - Laserfiche WebLink

Home Browse Search

Elk River Municipal Utilities UTILITIES COMMISSION MEETING TO: FROM: ERMU Commission Theresa Slominski—Finance and Office Manager MEETING DATE: AGENDA ITEM NUMBER: April 9, 2019 4.1 SUBJECT: 2018 Financial Audit ACTION REQUESTED: Receive and file the 2018 Annual Financial Report BACKGROUND: Audit fieldwork was completed February 28 and March 1 by our auditors, Abdo, Eick& Meyers (AEM). Again this year,AEM completed and compiled the enclosed audit report, and issued an opinion letter. Elk River Municipal Utilities staff has reviewed for approval. DISCUSSION: Mr. Andrew Berg of AEM will be at our meeting to present the 2018 audit and answer questions you may have. There were two audit adjustments resulting from General Accounting Standards Board (GASB) reporting requirements. The first audit adjustment related to pensions which resulted in recognition of a reduction in liability of$562,577, recognition of offsetting Deferred Outflows and Inflows of Resources, and reduction in expense of$78,130(between both funds). The second audit adjustment related to Postemployment Benefits other than Pensions which resulted in recognition of an increase in liability of$19,085 and recognition of an equal increase in expense (between both funds).These items are discussed in Note 3 and Note 5 of the financials. I'd like to recognize the accounting staff for their hard work throughout the year to have a successful audit completion, and thank them for a job well done. Ultimately a successful audit is the result of everyone in the organization doing their part to ensure proper record keeping and tracking of resources, and the collective effort of everyone is greatly appreciated. FINANCIAL IMPACT: None ATTACHMENTS: • AEM Audit Presentation • AEM Management Communication • ERMU Annual Financial Report For the Year Ended December 31, 2018 Page 1 of 1 65